Wh not B correct? I thought produce surplus is maximized. ----------------------- The minimum supply price, the lowest price at which a producer is willing to supply an additional unit of a good, is: A) less than the marginal revenue for the additional unit. B) the price at which producer surplus is maximized. C) constant at every level of output in a perfectly competitive market. D) the marginal cost of producing the additional unit. Your answer: B was incorrect. The correct answer was D) the marginal cost of producing the additional unit. The minimum supply price that producers must receive if they are to produce an additional unit of output is the opportunity cost of producing that unit, i.e., the marginal cost. The marginal cost curve is the short-run supply curve for the good.
because producers will produce until mr=mc